Cambodia Securities Exchange has been OPEN, finally!

It’s been almost 4 years and closely followed up by its folks, finally Cambodia Securities Exchange has been started on July 11, 2011. That is a step though not many companies register yet. Acleda Bank is one of the other private companies which were rumored to register when the stock market is ready. However, there are only 3 state companies have officially registered so far and not Acleda.

There is still a debate on how much trusty the public can rely on this market. One opinion believes that the few number of registered companies at the beginning is because private companies do not trust this market yet. Worse than that starting from that small number of registered company will affect people’s confidence even more.

Mr. Kim Bongsoo, Direct of Korea Exchange which has 45% shares, said that securities exchange has strongly contribute to the economy in Korea. After 50 years, Korea has been ranged 13th in terms of world economy.

Is it what we expect for Cambodia Securities Market? Nope, we want Cambodia reaches that point even faster. I am wondering how to contribute and how to push it faster. However, I believe that when we try to put thing on, there will be going on. There is a quote” The most difficult part to start sth is the first step”. Negative will never faster your process.

Let’s try to be POSITIVE all together! Whoever can take action to push it, let’s do your part.

Reference: http://www.voanews.com/khmer/news/economy-business/Though-Meager-Cambodian-Stock-Market-Launches-125362253.html
(Note: The article is in Khmer Unicode)

Cambodia Securities Exchange Office, Canadia Bank

 

Securities and Exchanges Commission of Cambodia (SECC)

The Securities and Exchanges Commission of Cambodia (SECC) has been formed and its website has been officially launched, which is under the address http://secc.gov.kh/english/. The site is available in both Khmer and English and consists of several sections such as Laws and Regulations, Disclosure Document, Investors, Market Participants, Market Info, News and Publication and Corporate Governance. However, the commission is dealing with six departments:

1. Financial and Adminstrative Department

2. Securities Issuance Supervisory Department

3. Legal Affair Department

4. Securities Intermediaries Supervisory Department

5. Securities Market Surveillance Department, and

6. R&D Training and International Relations Department

Though, most information has not been updated, the site is going to be essential for listing companies, investors and general public.

 

Cambodia is working to launch stock market as planned in 2009

People who have followed up the Cambodian stock market might be interested to hear about the update of the process. Well, it caught my attention to read today article on ” Cambodia is working to launch stock market as planned in 2009 ” in DAP-News Cambodia.

Cambodian officials said that there are many companies would like to trade on the stock market but they have not been allowed since the drafts on the regulations and conditions have not been issued. The officials also claimed Cambodia is working very hard to launch the stock market by 2009 as planned though there are a few months left. Cambodian government is planning to open the financial zoon especially in CamKo city such as Securities and Exchange Commission of Cambodia (SECC) and stock market itself.

To read full story, go to this link. But you need Khmer Unicode for this site.

 

When the next step??

Cambodian stock market issue has been quiet for months. Though I was busy with my thesis last couple months, I often followed up the updated news on Cambodian stock market, but seem not much information has been updated neither from Cambodian side nor Korean side. However, I found an article about the set up of stock exchange in Laos, which might be interesting since their joint venture partner is Korea Exchange (KRX), the same  one who gonna start in Cambodia. The article  stated that “the Laos exchange would be launched in June next year (2010) and trading would start four months later”. Full story

Sound as Laos is getting a step, how about Cambodia? What about other preparations such as regulations, accounting system or building confidence from the public?

Want something get started, continuous action is required!

 

The deal has been singed yet the launch still remains unclear

Cambodian stock exchange deal signed

Written by George McLeod

Tuesday, 24 March 2009

Cambodia and SKorea signed a joint-venture agreement for the Kingdom’s first exchange, but no launch date was set BLOOMBERG Share prices are displayed at the Korea Exchange (KRX) in Seoul. KRX on Monday signed an agreement with the government of Cambodia to establish its first exchange, a project that is expected to be set up by December at the earliest. THE Cambodian government and the Korea Exchange (KRX) signed their long-awaited agreement to set up Cambodia’s first stock market on Monday, in what authorities called a “historic event”. The signing ceremony was originally slated for February 19, but the KRX chairman was unable to attend, citing health problems. “The agreement reached today is another step forward in building necessary infrastructure … for the smooth operation of the market,” said Aun Porn Moniroth, secretary of state of the Ministry of Economy and Finance. Authorities say the exchange will start small, with up to five companies listed. But even with the contract signed, National Bank of Cambodia Governor Chea Chanto said authorities have no fixed date for the stock exchange launch. The launch was originally set for September, 2009, but the global economic slowdown led authorities to delay until December. With the economic situation worsening, Finance Minister Keat Chhon said even that date could be in question. “We cannot say for sure that the launch date will be December. We are working according to our plan,” he said at the ceremony. We cannot say for sure that the launch date will be in december. He said that the government is “following a clear roadmap” on the exchange and that the launch date depends on the progress of publicity, training and infrastructure. Despite the slow economy and the unclear launch date, business leaders said they were enthusiastic about the planned market launch. “The stock exchange is a very important thing [for the business community] because it will make companies more transparent,” said Douglas Clayton, managing partner for Leopard Capital, an investment fund in Phnom Penh.He said that the timing of the stock exchange launch is not the most pressing issue facing the exchange. “It doesn’t matter so much when the exchange opens – it will take a few years for the market to gain traction,” he said. John Brinsden, vice chairman of ACLEDA Bank, said business leaders are pleased the exchange is moving forward, but that the government needs to clarify the rules governing securities. “I think the exchange will go ahead – I don’t see the global economic situation … affecting the launch. The Ho Chi Minh City exchange started small,” he said. The agreement gives the Ministry of Finance 55 percent of shares and the remaining 45 percent will be in the hands of KRX. Korean Exchange CEO Jung Hwan Lee said the exchange could be an important step forward for the Cambodian economy. “The securities market was one of the key factors behind Korea’s prompt recovery from the Asian financial crisis,” he said. Source

 

A series of Cambodian Stock Market

Having been busy with my project for two weeks, just manage time to update this blog. The below article is a bit outdated but good to know especially for those who follow up Cambodian stock market series.

PM: Crisis may hinder Cambodian stock market plan

www.chinaview.cn 2009-02-17 10:26:47

Special Report: Global Financial Crisis

PHNOM PENH, Feb. 17 (Xinhua) — The world financial crisis may delay the establishment of a Cambodian stock market despite a plan to have it up and running by this year end, national media Tuesday quoted Prime Minister Hun Sen as saying.

A delay would help Cambodia avoid the “anarchy” and tumbling stock prices like other stock markets around the world, Hun Sen said on Monday at an economic conference in Siem Reap province.

“If the world stock markets are still in anarchy, should we follow the plan in 2009 or not?” English-language daily newspaper the Cambodia Daily quoted the premier as saying.

“If the stock market is born to die, we should not establish it at this time,” he added.

According to local reports, the Korea Exchange (KRX) planned to sign an official agreement with the Cambodian government on Thursday to help launch the kingdom’s proposed stock exchange market in December.

KRX manager Inpyo Lee expected institutional investors and foreigners to be the main source of liquidity in the early stages of the market, and about 30 companies would be listed by the time the exchange was operating “normally.”

Meanwhile, experts have expressed their doubt and lack of confidence, warning that the timing of the initiative could create problems as Cambodia faces reduced economic growth, increased unemployment and the threat of rising non-performing loans.

“I think that currently, the environment is not good enough to proceed with the stock market in Cambodia,” Kang Chandararot, economist and president of the Cambodia Institute for Development Study, told the Phnom Penh Post, adding that Cambodia would risk losing investors’ confidence, if it rushed prematurely into establishing an exchange.

Source here

 

Cambodian stock market is ready in this year?

KRX says it will sign official agreement with Cambodia next week to set up stock exchange by year’s end, despite warnings over economic climate

Written by Chun Sophal and Nathan Green

Friday, 13 February 2009

The Korea Exchange (KRX) and the Cambodian government will sign an official joint venture agreement on Cambodia’s proposed stock exchange Thursday next week, KRX project director Inpyo Lee told the Post, but there remained caution given the current economic climate.

The agreement, to be signed by KRX chairman and CEO Lee Jung-hwan and Finance Minister Keat Chhon, sets out requirements for both parties and contains penalty clauses, although Inpyo Lee declined to say what they were. He also refused to list the requirements, but said that the capital contribution was a key one.

He added that the exchange was on track for a December launch, provided the three state companies slated to be listed prior to opening complete preparations on time.

Some observers have warned that the timing of the initiative could create problems as Cambodia faces reduced economic growth, increased unemployment and the threat of increased nonperforming loans.

“I think that currently, the environment is not good enough to proceed with the stock market in Cambodia,” said economist Kang Chandararot, president of the Cambodia Institute for Development Study.

He said that to rush prematurely into establishing an exchange risked losing investor confidence “because the risks will be higher for participants”.

Nguon Meng Tech, director general of the Cambodia Chamber of Commerce, urged the government to postpone launching the exchange until 2012, saying that not enough Cambodian investors understood how a bourse works.

“Most Cambodian business old hands have little knowledge about a stock exchange. So, how can they throw money at it?” he said.

Keat Chhon acknowledged Thursday that while the government “cannot set an official date for the establishment of the stock market. We will put our efforts into achieving a [December] target”. Read more…

 

Entrepreneur Vs Investor

Five Things Prospective Investors Look for in a Business Plan

Before writing a business plan, put yourself in the investor’s place and consider what he or she might be looking for when reviewing your document. Obviously, investors expect to see the details of the business, such as the type of business, location, business structure, and markets addressed. Beyond the basics, however, there are key areas on which investors focus. While the particulars may differ depending on the type of investor, the amount of the funding required, and the nature of the business, there are five main things investors look for.

1. Investors want to see your background in the industry and business experience as well as that of your management team. Many small businesses fail because of weaknesses in the management team. See Presenting the Management and ownership Section of a Business Plan for more information.

2. Not only do you need to show how your product or service is unique, you need to prove that there is a demonstrated need for your offernings and a substantial market potential to make the investment worthwhile. Investors don’t want to invest in “little” ideas — you must show them the potential to be a big success.

3. No matter how unique your product or service may be, you must show that you know your demographics and can reach your target market in a continual manner. Your pricing and sales strategy must be clearly defined and in line with industry norms.

4. Investors want to know that you have acknowledged and researched your competition thoroughly. In addition, they want to see your stategy to contend with your competitors and distinguish yourself. What gives you the competitive edge? See Creating the Competitive Analysis Section of a Business Plan for more information.

5. Investors expect to see a return on their investment. Therefore, they want to see realistic financial projections that show how long it will take for the business to show a profit and for them to recoup their funding dollars. They also want to see a clear exit strategy: a way to make a profit and move on to the next deal.

Source…

 

Act as an entrepreneur :-)

I have been working on the new business plans these days, and somehow I can tell it is not easy to make it a so-called good one. There are many criteria to consider though we have got an idea, which is assumed as a potential one.  Some basic criteria that we should include in the business plan are:

1. Opportunity: That may come from the problems and solutions that we are going to provide.

2. The market: How big it is? If it is not much realized in the short-run, you may stress to expect it in the longer-run. Statistic is very important to support your argument here.

3. Business model: State it simply and clearly.

4. Competitive advantages: What is our uniqueness or differentiation compared to other competitors. We may talk about our competitor followed this point.

5. Management team: It remined me of the project in my Entrepeneurship class last year. All the five groups in the class missed to include the management team which is one of main aspect in the business plan (I guess we did not feel to advertize ourselves haha lolz and because it was just the academic project but professor did count it in our academic result…). Anyway…yah it is important to say someting nice and true about ourselves in the business plan.

6. Implementaion plan: Milestone action.

7. Marketing strategy: How we are going to market our product/service

8. Finance: Source of funds and other financail aspects.

These are just the main points. To make it more detailed, we may need to expand every points or add other necessary issues based on the particular business we are doing.

Alright….that is what I wanna share today! Let’s act as an entrepreneur!

 

IR $$$

International Relations guys do not confuse your term here. This blog is something about stock issues, so IR here is referred to Investor Relations.

What is IR? How important it is?

Before going to the article, let me apologize for being absent for these two weeks. Will try to post something as frequently as possible. Something I would learn too 🙂

Investor relations! We may find this section in most companies that are listed in the stock market.  Some large companies even have this entire department which deals any activities related the company’s public trade. According to WiseGeek, IR department is responsible to disclose and release the information of bond and stock holders of the company. Investor relations concern any information about the company that may affect the stock price or earnings of the company.Earnings releases, earnings forecasts, annual and quarterly reports and most press releases, are all part of investor relations and the responsibility of the investor relations officer or department.

How important?

Investors need to hear update news about their investing and this is company’s obligation or their strategic management responsibility to integrate the company finance from outside investment.

WiseGeek also recommends that if you are thinking of investing in a company and would like more information you would contact the investor relations department. It is their role to interact with you the investor and provide any information you require. They will be very helpful because in a real sense they are also trying to market the company to you. It is in the company’s best interest to attract investors, since investors are a source of capital for the company, and increased investor interest leads to increases in the company’s stock price. The investor relations department is the company’s only interaction with the stock market that it has full control over.

You may want to find other source about IR. Wikipedia.org gives some general information that we should learn as well…http://en.wikipedia.org/wiki/Investor_relations

If you have any comments, feel free to add. Thank you!